On April 2, 2025 – dubbed “Liberation Day” by President Donald Trump – the United States launched a sweeping round of tariffs, targeting virtually every trading partner. The move, aimed at rebalancing global trade, has triggered waves of volatility across financial markets, sending tremors through trading floors from Shanghai to São Paulo. In the 10 days since the announcement, global equity markets have gyrated wildly. Using five charts, we examine the magnitude and character of the market's response – through trading volumes, message traffic, and options activity.
1. Trading volumes surge worldwide
Volatility, unsurprisingly, tends to bring with it a rise in trading activity. In the wake of the tariffs, volumes surged, with the US and China leading the charge. Hour-by-hour data shows a sharp spike in transactions, particularly around key news cycles and reopenings.
Notably, Chinese volumes jumped on April 7, following a long weekend closure, amplifying pent-up demand. The increase in volume was not confined to any single region, highlighting the truly global nature of the policy shock.
Global trading volumes (US$) by hour
Source: BMLL Data Lab